Calls mount for transparency about South Africa’s jet fuel supply

The unresolved conflict in the Middle East and the subsequent closing of the Strait of Hormuz have had a widespread effect on global transport, including the supply of jet fuel.

With refineries ending up in the crosshairs of the conflict, production slowed down, which, coupled with the closed strait, has led to a global shortage.

This has led to a steep rise in refined Jet-A1 prices, forcing local airlines to implement measures that include fuel surcharges on tickets.

According to the Airlines Association of Southern Africa (AASA), jet fuel prices in Southern Africa have more than tripled from around R8.50 per litre in mid-February to over R30.00 per litre by mid-April.

“The increases have exacerbated the situation for African airlines, which, even before the current crisis, were paying some of the highest jet fuel prices in the world,” noted AASA CEO Aaron Munetsi.

Now, however, the association has expressed concerns regarding the lack of clarity on the availability of jet fuel across Southern Africa beyond May.

“Airlines require certainty on the security of jet fuel supplies beyond a six-week horizon if they are to maintain their schedules and fulfil their obligations to customers,” said Munetsi

“While we hope the situation in the Gulf will be resolved sooner, so fuel shipments can resume, we must safeguard aviation in case the impasse continues.”

The AASA is now calling on the region’s fuel suppliers, airports, depots, and governments to urgently share their contingency fuel allocation and distribution plans with the local aviation industry.

The association mentioned that even once blockades in the strait are lifted, it will take months for fuel production to return to its previous output, as several refineries have been damaged and will need to be repaired or rebuilt.

“This is why we need transparent updates on fuel stocks, including what has been ordered but must still be delivered, as well as the status of national strategic fuel reserves, the conditions that would trigger their release and how those reserves would be allocated and prioritised,” said Munetsi.

Operating amid disruptions

Air transport is a crucial pillar for the Southern African Development Community (SADC) member economies, and particularly susceptible to fuel supply disruptions, as it relies almost entirely on imported crude oil and refined jet fuel.

According to Munetsi, jet fuel accounts for up to 40% of some of the region’s carrier costs, which is why the latest spike prompted SADC-based airlines to implement cost recovery mechanisms.

These measures include fuel surcharges, while some carriers have already reduced flight frequencies, and others are consolidating flights.

However, Munetsi noted that airlines cannot plan or operate in an information vacuum, noting that they are painfully aware of the pressure that increased ticket prices exert on their customers.

He added that there will also be ripple effects across nations’ economies, especially considering how much they depend on air transport to ship pharmaceuticals and other perishables, e-commerce goods, and high-value cargo.

“At the same time, airlines should not be expected to absorb the shock on their own,” declared Munetsi.

“Airports and air navigation service providers must also come to the fore and collaborate with airlines in this regard.”

He concluded, saying that now is the time for airports to take responsibility, ensuring that they operate with maximum efficiency by eliminating congestion and delays that waste fuel and increase costs.